Lady Gaga has cancelled her sold-out show in Indonesia over security concerns after Muslim hardliners threatened violence if the pop star went ahead with her Born This Way ball.

The Islamic Defenders Front said the US singer's clothes and provocative dance moves would corrupt youth in the world's most populous Muslim country.

The group said supporters had bought tickets to the concert and planned to enter and force it to be stopped. It also threatened that thousands of protesters would confront the singer on her way from the airport.

Police said they would only issue the required permits for the concert if Lady Gaga agreed to tone things down. Instead, she pulled the plug on the show, which had sold out with more than 50,000 tickets.

"With threats if the concert goes ahead, Lady Gaga's side is calling off the concert," Minola Sebayang, a lawyer for the concert promoter Big Daddy, said on Sunday. "This is not only about Lady Gaga's security, but extends to those who will be watching her."

Indonesia is often held up by the US and others in the west as example of how Islam and democracy can coexist – 90% of the 240-million population is Muslim.

But a small, extremist fringe, has become more vocal – and violent – in recent years, sometimes attacking Christians and members of other religious minorities with clubs and machetes. They also targeted transvestites, atheists and others considered "blasphemous".

Jakarta was supposed to be the biggest stop on Lady Gaga's Asian tour, with 52,000 tickets sold in just a few days. Fans will be fully refunded, said Michael Rusli, head of Big Daddy.

The Islamic Defenders Front, or the FPI, celebrated news of her cancellation.

"This is a victory for Indonesian Muslims," said Salim Alatas, one of the leaders of the FPI. "Thanks to God for protecting us from a kind of devil."

Music lovers in Jakarta expressed outrage that the threats were able to force the show's cancellation. Lady Gaga fan Johnny Purba, 25, called it an embarrassment to Indonesia. "This only shows to the world how weak security forces are in this country, how police are afraid of a bunch of hardliners," he said.

"Gaga's two-hour show will not hurt Indonesian Muslims. For God's sake, she is not a terrorist!"